Not paying mortgage - former partner doesn't know

monkeysrevenge

I have a friend (yes, not me, a friend - I'm completing on my first house next week!) who has decided to stop paying his mortgage because he simply cannot afford it. He and his girlfriend (both named on the mortgage) split up last November and he has struggled to maintain paying it due to interest rises and being ill from work for quite some time.

The thing that suprised me is that neither he or his ex ever contacted the lender to say she wasn't living there any more, and he isn't forwarding any mail to her (just binning it I think). The concern I have for him is that he might end up getting in a bit of trouble if and when it came to repossesion proceedings, which ultimately in his eyes is the only option due to being in considerable negative equity. If she was blissfully unaware that this was happening, what would the legal standpoint be here?

Any reccomendations I could give him on his next actions?

TonyMMM

Has she been paying her half since she left, or has he been trying to pay 100% ?

Unless there was any other agreement put in place at they time they bought the property, they are both jointly and severally liable for the whole debt - so they need to get together and come up with a plan to sort out the split.

If not both their credit records will be trashed for the next few years - not to mention them being chased for the shortfall once the property gets repossessed and sold at auction.

monkeysrevenge

TonyMMM wrote: »

Has she been paying her half since she left, or has he been trying to pay 100% ?

Unless there was any other agreement put in place at they time they bought the property, they are both jointly and severally liable for the whole debt - so they need to get together and come up with a plan to sort out the split.

If not both their credit records will be trashed for the next few years - not to mention them being chased for the shortfall once the property gets repossessed and sold at auction.

He's been paying 100% since she left. They are both equally liable from what he told me.

holly_hobby

Whilst she remains a named mortgagor, she remains legally liable for servicing the mortgage, along with the ex, whether she resides there or not.

She should have really told the mge lender she had moved out, and requsted duplicate copies of statements etc to her new address - although this wouldn't relieve her of her legal responsibility as a joint mortgagor.

Anyhoo, if he stops paying, then her credit record will be trashed along with his. And alhough there is no longer a CML repossesions register, the repossession will be displayed on both their credit records for the next 6 yrs - further to which she and he must disclose this previous possession, even os of this period, if any application etc requests such info.

As he has no income, the option of getting her released is a no hoper.

So why not sell the property, they could advise the lender of this and ask for os payments to be rolled up onto the os debt .... however any shortfall on sale is still legally pursuable for upto 12 yrs (esp if there is already a neg equity situation) ?.

If he is longterm sick, has he ensured that he doesn't qualify for DWP benefit SMI (support for mortgage interest) ?

This will pay the interest at a rate of 3.63%, on a mge balance upto 200k - if its currently on a repayment basis, the lender may agree to temporarily switch to IO whilst the property is also up for sale.

Ignoring this won't go away ... so she may want to put in place payment direct to the lender ... as she is joint mortgagor they are fully able to discuss the account and accept this from her.

Hope this helps

Holly

ACG

Theyre both equally liable for it.

If he told her, then she may be able to contribute/come up with a solution.

As it is your friend is being extremely selfish and not only ruining his credit file but his ex's. Renting the property out for example, getting a lodger, her moving in and taking over it could all be options plus any other number of things.

Selling it and coming up with a payment plan would be better than a repossession! Your friend needs to sort this out, bad credit goes in time a repossession will have to be disclosed for a lot longer.

opinions4u

Running out of money and not being able to afford to pay is one thing.

But not telling her? That suggests he doesn't have a shred of decency.

He should at least give her the opportunity to decide how to handle a situation that could affect her for years to come.

mrginge

I have nothing constructive to add above what is already here.

However, i will say that your friend is a ****.

monkeysrevenge

I agree what he's doing is wrong... it's one of those situations where they aren't on speaking terms, except when dropping off / picking the kids up. She regularly takes the kids away for a week without giving notice, or not letting him see them on pre-arranged date, spreads lies and rumours to a lot of their mutual friends etc etc... I think this is his way of getting back as her in some respects.

She lives off the state with her new boyfriend, so doubt she'd be able to help out or pay anything towards the mortgage either.

I also should clarify from my initial post, he was off sick for 6 months or so this year but is now back at work, however all the arrears of mortgage payments etc are too much for him to catch up with.

ACG

My cousin cut her nose of to spite her face and get one over on her ex... guess whos not laughing 2 years on. She did not get anyone back just caused more pain down the line.

If he cant afford the payments, sell up and arrange a payment plan. This will then mean they have one less thing in common and its only the kids they have to worry about with each other.

I have no sympathy for things like this and using one thing to reason doing something else has a snowball effect. Its childish, irresponsible and stupid. Things like this annoy me as its totally avoidable, if he faces it head on it can avoid a whole load of heart ache years down the line.

I know i can certainly say this and im sure other brokers can too (infact read through old posts on here and you can see it for yourself) - the amount of times i see people who say "oh but this happened when i was young/irresponsible" or "that was when i was with my ex and he/she did...." actions now have consequences years down the line.

3-4 years down the line he may have a promotion/meet a new partner and they decide to buy but cant because of this. 3-4 years is a long time away but it wont be when you get there. I wont lie, it will be an absolute ball ache, the lender will most likely be a pain in the.... to deal with, but its worth sorting.

Yorkie1

It's also very shortsighted of him if he can't see that wrecking the credit record of his children's resident parent will in all likelihood impact on the quality of life which his children might receive.

ethank

He sounds depressed. Is he thinking rationally?